How To Benefit from KIA And EIA In Netherlands C&I Energy Storage Investment

In recent years, the Netherlands has been committed to promoting the development of the economy and renewable energy, and has introduced a number of preferential policies. In particular, the KIA (small-scale investment deduction) and EIA (energy investment deduction) policies are particularly prominent. These two policies not only help companies reduce taxes, but also promote environmental protection and sustainable development.

KIA: Encourage investment in small and medium-sized enterprises

KIA (Kleine Investeringen Aftrek): is a tax relief policy established to support investment in small and medium-sized enterprises, especially for enterprises with smaller annual investment amounts. Its goal is to encourage enterprises to invest and thus promote the growth of the Dutch economy.

1.???? Scope of application:

• Small and medium-sized enterprises in the Netherlands, that is, enterprises with annual investment not exceeding 10 million euros.
• Applicable to fixed asset investments that can be included in the company's financial statements, such as equipment, machinery, vehicles, etc.
• The equipment must be used for business operations and have a certain service life.

2.???? Tabel kleinschaligheidsinvesteringsaftrek 2025

• Investment is no more than €2,900, the KIA is 0%;
• Investment is €2,901 to €70,602, the KIA is 28% of the investment amount;
• Investment is €70,603 to €130,744, the KIA is € 19,769;
• Investment is €130,745 to €392,230, the KIA is €19,769 reduced by 7.56% of the portion of the investment amount above €130,744;
• Investment is more than € 392,230, the KIA is 0%.

3.???? How to apply:

When filing annual tax returns, enterprises shall submit relevant information in accordance with the requirements of the tax bureau and apply for corresponding tax reductions and exemptions.

EIA: Promote energy efficiency and sustainable development

EIA (Energie-investeringsaftrek): This policy supports the application of energy-saving and renewable energy technologies. It encourages companies to invest in energy-saving equipment or adopt renewable energy technologies, which not only helps companies reduce operating costs in the long term, but also promotes the Netherlands' transition to a low-carbon economy.

1.???? Scope of application:

• The investment must be in a project on the energy list;
• The investment equipment must meet the energy efficiency standards set by the government and be included in the EIA certified list to enjoy tax relief;
• The investment amount must be at least €2,500.

2.???? Tax incentives:

• When enterprises purchase energy-saving equipment, they can deduct 40% of the investment amount from taxes;
• They can also enjoy corresponding tax reductions and exemptions when upgrading and renovating existing facilities to save energy.

3.???? New changes in EIA policy in 2025:

• Change 1: The previous requirement was that if a company wanted to apply for tax incentives by purchasing photovoltaic modules, these photovoltaic modules must be connected to this small consumer grid connection. (That is, a grid connection with a maximum current of 3 x 80 A)

Now it is: If you invest in photovoltaic modules, you no longer need to connect to the traditional small grid connection, which makes the application conditions of tax incentives more relaxed and can cover more types of photovoltaic installation projects.

• Change 2: Starting in 2025, if a company installs photovoltaic panels that are not connected to the grid, it will no longer be able to enjoy energy investment tax deductions, and such investments will no longer be eligible for energy investment tax deductions.

4.???? How to apply:

The enterprise needs to submit an application to the Netherlands Energy Tax Authority (RVO) before investing to confirm that the equipment or technology meets the EIA standards and obtains approval. After the investment is completed, the enterprise can enjoy tax reduction when filing the annual tax return.

KIA and EIA combined use: enjoy policy benefits at the same time

The KIA and EIA policies can be used in combination, and enterprises can enjoy the benefits of both policies in the same investment.

For small and medium-sized enterprises, this is undoubtedly an important means to reduce costs and enhance competitiveness. KIA encourages all types of investment, while EIA focuses on promoting energy conservation and sustainable development. Enterprises can flexibly use these two policies according to their own needs to achieve a win-win situation for investment and environmental protection.